Financial tips & advice

Finance

It’s just a theory from a professor, but the idea is beginning to catch attention: your airplane fares being determined by your actual weight. This means that if you’ve got some extra pounds, you could literally be paying for your excess weight in the eyes of the airlines. The offending study is actually from the Journal of Revenue and Pricing Management, and the professor is Dr. Bharat P. Bhatta. The professor stated that taking into account the weight of something is necessary for something like flying from place to place, because it can affect fuel consumption. Since airlines are looking for any way to cut fees, chances are good that they might go with this. You need to really step back and think whether or not you want to support something like this if it goes through. Only through your voice will the airlines know that this isn’t a good idea.

It’s hard not to feel like the proposal is discriminatory. Obesity is indeed on the rise, but it’s not necessarily an easy fix to implement. You have to be aware of the fact that not everyone is overweight merely because they’re taking in too much food. Reactions to medicine or even undisclosed allergies can really keep you from getting the type of body that you really want. However, if the airlines pass this — there won’t be any medical exceptions made.

Charging airline goers for how much they weigh — as well as their baggage — would be a game changer, though not in the way that the airlines intend. There is already mounting opposition to this proposal, considering how high fares are going these days anyway.

The editor of the Journal of Revenue and Pricing Management agreed with Dr. Bhatta, but it will take time to tell whether or not this policy will be implemented. The proposal initially calls for price additions or reductions for extra weight above a certain limit. This would create problems as the question would naturally be: just what weight would be set as the standard? Also, this would not take into the account the natural increase in weight that comes from being taller than someone else. It is quite possible to be 100kg at higher heights.

What do you think? Is this a good policy for the airlines? Will it affect the way that you travel now, or will you find other ways to get from place to place? Let us know!

Just about everybody is feeling a little squeezed in the current economic climate. Shops are selling fewer luxury items and more of their budget range products and, in fact, high street sales figures have been disappointing for some time. Additionally, people are using more public transport instead of taking their cars to work, which is a great way of saving money and cutting down on energy use.

And some smart people are saving even more money by making a few easy changes to how they use energy at home:

Food and drink

If you’re making yourself a cup of tea or coffee, only put the right amount of water in the kettle, as overfilling it can waste almost as much as £60 per year. Another interesting way to save is by using your cooker correctly: following pre-heating instructions can also save you money, as a correctly heated oven can be turned to a lower temperature for the duration of the cooking time. If you have a smaller top oven, use it whenever possible, and when cooking on the hob, use the smallest sized pan that is adequate, enabling you to heat your food on a smaller ring, saving energy.

Heating

When the cold weather starts, put the heating on, but turn the thermostat down by one or two degrees, a barely noticeable difference but one that might save you a considerable amount of money over time. By fitting thermostatic controls to your radiators, you can raise the temperature in a room that is particularly cold, without doing the same all over the house, and by using timers, you can set the heating to stay on as long as necessary, but switching it off when you’re tucked up in a warm bed. Additionally, you should have your boiler serviced regularly to keep it running efficiently, or you will waste energy every time you use it.

Lighting

You should only turn on lights when you need to and don’t leave them on in empty rooms, unless for security purposes. As well as being careful about how you use lights, you should make sure that the bulbs you buy are energy-efficient, a practice that can save you as much as £14 per bulb over its lifetime.

Housework

Many of us waste a lot of energy while we clean, so there are great savings to be made in this area. You can replace your appliances with energy-efficient ones, but as that is a major expense, there are many smaller things you could do. For example, wash your dishes by hand instead of using the dishwasher. Never do a wash unless there is a full load and, where possible, do a cold or 30 degree wash. With modern washing powders and liquids, you seldom need to wash at higher temperatures, even if you’re a really messy eater! Try to avoid using the tumble dryer whenever you can, by using clothes maidens or hanging the washing outside if the weather is dry; if you hang them carefully while they’re wet, they will be easier to iron, which will save even more energy and free up a lot of your time. Sweep the floor rather than vacuuming and, as well as saving energy and money, you’ll tone up some muscles and burn more calories as a bonus!

By making these simple changes, you can cut down on your household energy use, which can be as good as having cheap electricity – you might even save as much as £100 or more in a year! Regardless of how much you save, you will also be happy in the knowledge that you are helping to create a greener environment.

One of the top questions being discussed centers around the retirement debate: do you really want to stop working? A lot of people assume that they’re going to want to stop working, and that might not be the case at all. You might really like what you do to the point that you just can’t imagine stopping. Some people are really like that. They think that they would be better off working instead of retiring. It’s something that you’re going to have to decide for yourself.

The longer you work, the more money that you store up. Of course, you’re going to have to eventually tap your pension. Eventually, it means that you’re going to have to tap your pension eventually. However, there will be a point where you get to have the best of both worlds. You’ll have money coming in, you’ll have your pension income, and it also means that you will get to have a comfortable life. It just depends on what job you’re working. If it’s something that keeps you busy and challenged, then why quit?

If you’re trying to stay at your job as long as possible, keep in mind that your employer might have other plans. Unless you’re someone that really provides key value to the company, then you’re going to find it difficult to actually stay at your job. It just depends on the job, honestly. Some people will find that their employer truly values them and doesn’t want them to just walk out the door. They can also serve as a strong trainer and mentor to younger workers coming up in the company, so it definitely makes sense to retain the knowledge.

In addition, you want to make sure that you have your bills under control. If you have debts, then you can use the extra time at work to get rid of them. Going into retirement with a lot debts is a recipe for disaster. What if your investment linked pensions dip in value? You could find yourself without a lot of options in terms, of getting more money into your home.

You have to figure this stuff out before you make a serious decision. If you’re stuck, bringing your thoughts to an independent financial adviser is definitely the way to go. They get this question a lot, and they will be able to help you plan the best course through life possible. Don’t worry that you’re asking stupid questions — this is part of their job, after all. You just have to trust that you’re going to get all of this stuff figured out. Don’t give up when there’s always a chance to really get things moving along nicely. Good luck!

If you’re going to think about running your own business, then it’s time to start thinking about business infrastructure. You might have already thought about your dream office where customers will come to you and you might have already thought about a bunch of other expenses needed to run the business. But have you considered where your business will be putting its money? You need to think about the opportunity that banking can bring to your business.

When a business has a permanent banking home, they have options. Think of it as a chance to get to know the bank and see what they can do for you. If you start with free business banking, then you essentially get to walk down this road for free. You aren’t going to be left worrying and hoping that you can get a loan in the future. Businesses help other businesses that help them. In other words, the bank wants to loan money to businesses that it already has began to know.

It’s important then to think about getting loans for business purposesfrom the same bank that has held onto your money. You want to show them that your business is steadily growing, that you’re making the right decisions, and that you are being as organized as possible. That’s the only way that things are going to slide into place. If you don’t handle these things, you’re going to be left out in the cold. Who wants to go through that? Who wants to find out that they really can’t get things moving in the right direction?

A business loan can be a powerful tool that you will be able to use to grow your business to higher and higher levels. You don’t want to find that you’re going to hit a wall merely because you don’t have the funding your business needs to grow. There’s nothing in the world like knowing that your business is moving in the right direction.

Giving yourself every opportunity to make your business grow is very important. Why not look into that free business checking and see where it can lead? Of course, you’ll need to let the bank know more about you. Building the relationship is really what you need to focus on. Good luck!

Every UK consumer hat we know wants to save money. Cutting down on gas and electricity bills would definitely do the trick, but you’re going to need to make sure that you definitely look at the finer details.

There are two new players in town, so to speak. Flow Energy and Spark Energy are offering consumers a chance to really save some money, but you have to make sure that you know what you’re getting into. You see, these energy suppliers demand that you pay your monthly bill before you can use any fuel. This means that if you’re trying to switch from the normal direct debit tariff, you might have some pretty big bills to deal with.

If the new companies go out of business, you could lose that month’s payment. Any refund process that could be forced through by Ofgam or any other authority would be slow in the making, as this trend hasn’t really been fully fleshed out yet. Sure, there’s some legal avenues that you can explore, but none are guaranteed by default to get you your money back.

Flow Energy right now looks like the best deal when it comes to the one-year, fixed-rate type of scheme. uSwitch reported that the most popular tariff would cost about 1,135 GBP a year. Spark Energy dazzles by offering the best variable rate plan available.

Leading industry experts are concerned about the type of payments these new firms will accept. There’s no cash option at all for Flow Energy, and Spark Energy really nails you in order to pay in this way — nearly 81% more money per year just to pay in cash. So if you want to really get the super amazing deal, you have to make sure that you do monthly debit. That might be something that you don’t want, for a lot of different reasons.

Is this something that you would check out for yourself? Well, it can save you some money, but you might not go for it simply because of the pitfall of having to pay upfront every month. Let us know in the comments what you think!

Spring is here — why not make some extra money? You might as well look into anything that’s going to let you make a new path in your life. The winter brings everyone down, but the fresh air should give you more purpose in your life. Here’s a few ways that you can really make big money in your spare time — sometimes even within your own lunch hour!

First and foremost, you might want to sell the stuff that’s just taking up space in your house. This is something that’s been a tried and true classic, but a lot of people brush it off. They don’t feel that it’s worth it when they have so much to do. However, things were meant to be used. What’s the point of paying extra money for storage just because you aren’t willing to part with things. If you are willing to part with them, you’ll find that you’re going to be able to bring in extra money that you can use now.

There’s plenty of local “cash for clothes” stores. They make it easy by giving you a flat price on what you bring in. You get paid according to the weight, so if you give away a bunch — you can get a bunch back.

You might want to look at your current account as a way to save money. Look at some of the great deals on current accounts going on right now thanks to the start of the new tax season.

You could also get cashback on your shopping — there are plenty of great cashback cards out there.

What about all of those old gadgets laying around your house? If you’re wild about technology, you might ignore how many techogadgets are really taking up space in your life. But recycling them could be worth big gash. There are plenty of online sites that now let you type in exactly what you have, and you’ll get an offer ion your own technology. This way, everyone wins.

There’s even sites that will pay you cash for old printer cartridges. It might not be much, but every little bit adds up. There’s also sites that focus on you giving your opinion.

The more money that you can make on the side, the easier it will be to justify some of those little purchases that you’ve been thinking about it. You should at least check it out today, while it’s still on your mind! Good luck!

Retirement may seem far away for some of us, but it is important to start thinking about it very early. We need to make a number of decision about it so that we can make sure that we have the right amount of financial resources available to use. Here are some tips to make before you retire.

Expected Lifestyle

It is important to think about how we expect our lifestyle to be when we retire. If we want to have the same lifestyle that we have now, then we will need to have a similar income. Many people make the mistake of thinking that costs will be lower when they retire. There will some reduced costs, as you may have paid off the mortgage or no longer have dependent children at home, but there will still be bills to pay and things to buy. Everything will be more expensive in the future as well due to inflation and that needs to be considered.

You may imagine that when you are retired you will have lots of holidays, days out, spend time in the garden and going out with friends. This all costs money and you need to consider where that money will come from. On the other hand, you may just have resigned yourself to the fact that you will just have a minimal pension and manage with benefits. This is not a good quality of life, especially if you are not used to it and there are ways that you can make it better, if you start your pension planning early.

Income Required

We will not be earning anything, so we will need to depend on passive income to support us. This means that we need to consider where that money will come from. Many people use a pension plan, but these days more people are looking for different ways to invest. They may be looking at rental income from properties they own, income from businesses they have or using savings. It is worth considering where you expect your income to come from. Work out how much you will need to support the lifestyle that you are aiming for. It may be a lot more than you imagine, but the sooner you can start putting money away for it, the better.

How to Acquire the Money

Getting the money may be a more tricky consideration. Long term investments are something that can be difficult to choose as you never know what will happen in the future. However, there are a selection of options. A pension fund is something which most people use and this can be the best idea in some cases. If your company offers you a pension which they will also contribute towards then this can be a good way to not only get a tax break on some of your earnings but also put some money towards your retirement. It may not be enough money, but it will all help. You may also have a personal pension if you wish.

Another way to get an income is to buy a second property and rent it out. This may not be as easy as it sounds as you may need to get a mortgage and you will only get an income if you have tenants in the property. You will gain from the increase in value of the property though. You should not solely rely on the income from this though as it is not guaranteed.

Buying other investments may also be able to provide a lump sum or income in retirement. However, investments are a risk as they can go down as well as up in value, although do tend to increase in the long run.

It can be worth putting some money in a safe savings account, to make sure that you definitely have something for retirement. However, it is unlikely to get very much interest on it and therefore may even be worth less in real terms when you retire than when you saved it, if the interest rates do not keep up with inflation.

In these days where finances are tight for everyone, it can be difficult knowing where to save money. Not only do most people not have a lot of money available to save, but they are not sure where to save it because the rates are so low. There are ways though, that you can not only free up spare money to save, but also find places which have favourable interest rates.

Finding Money to Save

Most people have tightened their belts lately. Many of us have no hope for a pay rise or promotion and there are no extra hours to do, to earn more money. However, it can be worth looking for opportunities to earn more, perhaps online, for example. You will have to let your employer know if you start up your own business. You can try online survey sites, writing a blog and getting sponsorship, doing freelance work or other things. There are many places online where you can find work. You could do offline work too such as bar work, twilight office work and things like that. You could buy and sell things or sell items that you have to make money.

You could also work harder at cost cutting. Find cheaper utility suppliers, maybe even a cheaper property to live in. You could try cheaper foods or supermarkets and try to minimise luxuries such as satellite television, mobile phones etc. It can be difficult to do this, but it can make a big difference, if you make a lot of small cuts.

Finding the Best Place for Savings

Once you have some savings, you need to find a good place to put them. There are many accounts that pay very little interest these days and so you need to think hard about where you would like to keep your money. It can be worth looking at a comparison website to see where the best savings accounts are. Some may need you to have a current account with the place as well or you may need a minimum amount paid in a lump sum or put in each month. It is worth looking carefully though, as there are a few good options around.

It is important to check the rates regularly though. Unless you have a fixed rate for a certain term, the rate could change quickly and you will find yourself earning very little interest on the account. The financial institution is not obliged to inform you personally when their rates change, so it is up to you to check.

It is also worth looking for an ISA which will protect your interest against being taxed.

So it can be possible to find some extra money to save and an account to save it in, but it will take hard work and research.

If your children have been begging for a new pet in the family for a while, don’t worry — you’re definitely in good company. A lot of families adding a four legged friend or two to the family, and these are decisions aren’t as straightforward as you think. You see, your pet can actually cost a lot more than you think, in ways that you might not have considered before.

A lot of smart personal finance types do stop and think about their budget as it relates to their pets. However, have you ever thought about the worst case scenario? What if you get a new dog, only to find that they have a tendency to bite anybody who comes in? Those dog bites can cost you a fortune — even if you have homeowner’s insurance. Once your dog is considered violent, you will have to either pay higher premiums to have insurance, or you will have to put your dog down –- a choice that’s truly hard to make.

Even if you have a cat, you still have to calculate in the type of damage they can do to your furniture. Some people are against having their cats dewclawed, then you’re going to have to make sure that they’re not a danger to others as well as you’re going to have to give them a safe place where they can scratch and dig. Some people go ahead and dewclaw them, but others do not.

Speaking of medical needs, you will need to also think about the type of medical bills that you will incur in the future. Veterinarians are truly specialists, and that means you could face a pretty hefty bill. A good vet is definitely worth the extra costs, but you also have to make certain that looking at ways to lower costs. Pet insurance isn’t created equal across the board, so you really need to look into that as much as possible.

Pets can also affect your vacations. Indeed, can you really take your pets with you? Sometimes you’ll be able to do this, but other times you’ll have to leave them at home. This means that someone will have to watch over your pets and that can get expensive as well. Boarding centers for pets aren’t cheap, and they know that they are providing a premium service.

It can be hard to step back and look at all of these expenses, but it’s absolutely necessary — don’t get emotional about a new pet without thinking about how much it’s going to cost to really take care of them. You could end up saving a lot more money than you think, just through knowing what’s in this guide. Good luck!